Qantas secures Fair Work victory over outsourcing limits

Qantas has been dealt a victory in its long-running dispute with 3800 baggage handlers after the industrial umpire rejected their claims for a limit to be put on the outsourcing of work.

The Transport Workers Union, which represents baggage handlers and other ground crew, had wanted outside labour hires to be capped at a fifth of the number of full- or part-time Qantas workers.

But in a judgment released today, the Fair Work commissioners ruled that the TWU's claim failed because Qantas had for many years used labour hire and contractors, which had not been shown to adversely affect the airline's other employees.

"To interfere with management's decision on such a matter would require clear and strong evidence of unfairness," the judgment said. "No such case has been established."

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The outsourcing of work was at the centre of the bitter dispute between Qantas and the

engineers' union, the TWU and the long-haul pilots' union last year, which culminated in management's decision in late October to ground the airline. Fair Work subsequently terminated the disputes.

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Although the engineers settled in December, the disputes between Qantas and the TWU and the pilots' union over new enterprise agreements went to binding arbitration before Fair Work.

In the TWU's case, it had sought wage rises of 5 per cent a year, while Qantas had proposed 3 per cent rises. But in the judgment released today, the commissioners found in Qantas's favour because they believed that wage rises of 3 per cent a year had "due regard to the current circumstances of the employees and Qantas".